EXCLUSIVE: Fake-branded bars - a new way around global measures to block conflict minerals and money-laundering. Reuters peterhobson15 reports:
FILE PHOTO - Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo
“The latest fake bars ... are highly professionally done,” said Michael Mesaric, the chief executive of refinery Valcambi. He said maybe a couple of thousand have been found, but the likelihood is that there are “way, way, way more still in circulation. And it still exists, and it still works.” It is not clear who is making the bars found so far, but executives and bankers told Reuters they think most originate in China, the world’s largest gold producer and importer, and have entered the market via dealers and trading houses in Hong Kong, Japan and Thailand. Once accepted by a mainstream gold dealer in these places, they can quickly spread into supply chains worldwide.
When others who store and trade such gold found forged bars, they returned them to the refiner concerned, some of whom have operations in Asia. Bars returned to Switzerland have been reported by refiners to the Swiss authorities who impounded them, refiners said. In China, almost all exports of gold are banned as part of the country’s strict, longstanding controls on capital movements. That, market analysts say, has spurred demand among well-to-do Chinese who want to send money out of the country to find ways to smuggle it.
For recipients, the pirated bars pose a compliance threat: Anyone who holds such metal - including jewelers, banks and electronics firms - risks inadvertently violating global rules designed to keep metal of unknown or criminal origin out of circulation. The rules aim to staunch gold supplies that fund conflict, terrorism or organized crime, damage the environment or undermine national governments.
The perfect appearance makes the bars highly effective. “Because gold is completely fungible,” Hayes said, “you can bleed it into genuine production. It’s very, very hard to control.” Other banks have also restricted gold purchases in Asia, 15 people in the industry said. “Anything that has even the chance of being iffy they are not going to be involved in,” said Alexander, the analyst at GFMS Refinitiv.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Embarrassed and incredibly disappointed,' says sheriff of deputy's fake sniper storySheriff's deputy who set off a massive manhunt when he allegedly faked being shot by a sniper has left colleagues furious, with his boss moving to boot him off the force and investigators probing potential criminal charges.
Read more »
Rico Nasty’s Guide to Bold Brows, Fake Freckles, and Galactic HighlighterFrom faux flecks to “extra” sheen, the rising rapper shares the tricks behind her stage-look signatures.
Read more »
Fake Juul pods line store shelves, worrying users and posing another threat to the embattled companyJuul users can buy 'compatible' pods that can be vaped with Juul's devices but are made by different companies. Then there are the more troubling, counterfeit products, which advertise themselves as and look like real Juul pods to the naked eye.
Read more »
Luxury Brands Want To Attract Chinese Consumers. But Why Do They Keep Getting It So Wrong?A major first step for any brand seeking success in a particular market, is to know that market.
Read more »